P.N. Paper Mills Pvt. Ltd. vs. DCIT Circle 19(2), New Delhi: Case Filed for 2016-17 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

P.N. Paper Mills Pvt. Ltd. vs. DCIT Circle 19(2), New Delhi: Case Filed for 2016-17 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme

Case Number: ITA 6010/DEL/2019

Appellant: P.N. Paper Mills Pvt. Ltd., New Delhi

Respondent: Deputy Commissioner of Income Tax, Circle 19(2), New Delhi

Assessment Year: 2016-17

Case Filed On: 12th July 2019

Order Type: Final Tribunal Order

Date of Order: 25th March 2021

Pronounced On: 25th March 2021

Background of the Case

This case involves an appeal filed by P.N. Paper Mills Pvt. Ltd., a private company based in New Delhi, against the Deputy Commissioner of Income Tax (DCIT), Circle 19(2), New Delhi, for the assessment year 2016-17. The appeal was filed on 12th July 2019, challenging the assessment order passed by the CIT(A)-7, New Delhi. However, during the pendency of the appeal, the appellant opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020.

The Vivad Se Vishwas Scheme was introduced by the Government of India to resolve pending direct tax disputes by offering taxpayers an opportunity to settle their tax cases by paying the disputed tax amount without any additional interest or penalty. This scheme was designed to reduce the burden of litigation and facilitate faster resolution of tax disputes.

Proceedings in the Tribunal

The appeal was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal via video conferencing. The bench was presided over by Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member. The hearing took place on 25th March 2021, with the final order pronounced on the same day.

During the hearing, the appellant, P.N. Paper Mills Pvt. Ltd., was not represented, as they had previously communicated their intention to withdraw the appeal. The appellant’s counsel, via an email dated 12th March 2021, informed the Tribunal that the appellant had opted to settle the dispute under the Vivad Se Vishwas Scheme, 2020, and requested the withdrawal of the appeal. The appellant also provided a certificate under Section 5(1) of The Direct Tax Vivad Se Vishwas Act, 2020, confirming the settlement.

The Department’s Representative (DR), Shri M. Baranwal, had no objections to the withdrawal of the appeal, which allowed the Tribunal to proceed with dismissing the case.

The Dispute and Its Resolution

The original dispute in this case was related to the assessment made by the DCIT, Circle 19(2), New Delhi, for the assessment year 2016-17. The appellant, P.N. Paper Mills Pvt. Ltd., had contested the assessment order before the CIT(A)-7, New Delhi, and subsequently filed an appeal before the ITAT. However, before the case could be decided by the Tribunal, the appellant chose to avail of the benefits under the Vivad Se Vishwas Scheme, 2020, thereby opting for a quick resolution of the tax dispute without further litigation.

Under the Vivad Se Vishwas Scheme, taxpayers could settle their disputes by paying only the disputed tax amount, with a full waiver of interest and penalties. This scheme was particularly attractive to taxpayers looking to avoid prolonged litigation and achieve a resolution without incurring additional financial burdens.

In this case, P.N. Paper Mills Pvt. Ltd. utilized the scheme to settle the tax arrears for the assessment year 2016-17, leading to the withdrawal of the appeal. The Tribunal, after considering the appellant’s request and the lack of objection from the Department’s Representative, dismissed the appeal as withdrawn.

Tribunal’s Analysis and Decision

The Tribunal reviewed the appellant’s request for withdrawal of the appeal in light of the provisions of the Vivad Se Vishwas Scheme, 2020. The Tribunal acknowledged that the appellant had voluntarily opted to settle the dispute under the scheme and had provided the necessary documentation to support this decision.

In considering the request, the Tribunal emphasized the importance of the Vivad Se Vishwas Scheme in reducing litigation and enabling a more efficient resolution of tax disputes. The Tribunal noted that the scheme provided a valuable opportunity for taxpayers to settle their disputes on favorable terms, thereby alleviating the burden on both the taxpayers and the tax authorities.

Given that the Department’s Representative did not oppose the withdrawal of the appeal, the Tribunal found no reason to proceed further with the case. Consequently, the Tribunal dismissed the appeal as withdrawn, in line with the appellant’s request.

Conclusion

The case of P.N. Paper Mills Pvt. Ltd. vs. DCIT Circle 19(2), New Delhi, highlights the effectiveness of the Vivad Se Vishwas Scheme, 2020, in resolving tax disputes. By opting to settle the dispute under the scheme, the appellant was able to avoid prolonged litigation and achieve a resolution without the additional burden of interest and penalties.

This case serves as an important reminder of the benefits of government initiatives like the Vivad Se Vishwas Scheme, which are designed to streamline tax administration and reduce the backlog of cases. For taxpayers and tax practitioners, the scheme offers a practical solution to resolving disputes efficiently and cost-effectively.

The Tribunal’s decision to dismiss the appeal as withdrawn underscores the success of such schemes in achieving their objectives. It also highlights the role of the Tribunal in facilitating the resolution of disputes in a manner that aligns with the broader goals of tax administration.

The final order, pronounced on 25th March 2021 by Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member, reflects the Tribunal’s support for the principles embodied in the Vivad Se Vishwas Scheme and its commitment to promoting efficient tax dispute resolution.

Order Pronounced By: Shri G.S. Pannu, Vice President, and Shri Sudhanshu Srivastava, Judicial Member

Final Order: Appeal Dismissed as Withdrawn Under Vivad Se Vishwas Scheme

P.N. Paper Mills Pvt. Ltd. vs. DCIT Circle 19(2), New Delhi: Case Filed for 2016-17 Assessment Year – Appeal Withdrawn Under Vivad Se Vishwas Scheme